GLOBAL EQUITIES HUB

The ‘smaller company paradox’ says that over the longer term, smaller company returns have outstripped those of their large-cap peers – but looking ahead this should be seen as a structural longer-term trend, not a short-term anomaly

UK investors have historically shunned offshore funds as being vehicles for tax avoidance, existing in an alternative regulatory regime, or simply for being unavailable – but today, all of that has changed.

Following the global financial crisis, interest rates and bond yields saw investors broaden their demand for income by increasingly turning to equities – yet these same investors are reticent to broaden their equity search beyond their domestic market.

Equity investors want to have their cake and eat it, demanding ever-more sophistication from an increasingly selective list of funds, which gives unconstrained investing greater prominence in their hunt for the best possible risk-adjusted returns.

Kevin Troup, Global Equity Income Fund manager, along with colleagues from the regional equity teams subsequently had a number of conversations with competitors, peers and suppliers from the US to Japan, to better understand what the rest of the market did not.

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